Which of the Following Statements Is True

question 178

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.
• B)A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C)If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Lump Sum

Lump Sum refers to a one-time payment made in full instead of broken into installments.

Separate Investments

Distinct individual investments held within a portfolio, rather than combined or aggregated holdings.

One-time Deposit

A single, initial deposit of funds into an account or investment, rather than multiple or recurring deposits.

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the accumulated interest.